RAYUSDT Breaks Key Support — But a Rebound May Be Brewing Near 0.590

Summary
• RAYUSDT broke below key support near 0.615, triggering a 9% drop in the 24-hour period.
• Momentum weakened as RSI and MACD diverged, signaling potential oversold conditions.
• Volatility expanded in early hours, with volume surging above 200k as price approached 0.590.
• A bullish engulfing pattern emerged near 0.590–0.593, hinting at potential short-term reversal.
• Bollinger Bands show price consolidating near the lower band, indicating a possible rebound.

At 12:00 ET on 2026-02-07, Raydium/Tether (RAYUSDT) opened at 0.633, peaked at 0.642, and closed at 0.591 after hitting a low of 0.587. Total volume reached 2,186,256.7, with notional turnover of 1,322,414.95.

Structure & Formations

Price action shows a significant breakdown from 0.630 to 0.590 over 14 hours, with a bullish engulfing pattern forming near 0.590–0.593. This suggests traders may see a short-term bounce, though the 0.600 level remains critical.

Moving Averages

The 20-period and 50-period moving averages on the 5-minute chart have crossed below key support levels, reinforcing bearish momentum. On the daily chart, the price is below all three major moving averages (50, 100, 200), indicating a stronger downtrend.

MACD & RSI

MACD has crossed into negative territory, while RSI is approaching oversold levels around 30. This divergence could suggest a temporary reversal, but caution is needed as RSI remains bearish in context.

Bollinger Bands

Volatility has expanded significantly in the early hours, with price near the lower Bollinger Band. This often precedes a rebound, though confirmation is needed before assuming a reversal is in motion.

Volume & Turnover

Volume spiked above 200k during the key breakdown below 0.615 and again near the 0.590 level, confirming bearish sentiment and potential short-term exhaustion. Turnover and price remain aligned, suggesting no major divergence in conviction.

Fibonacci Retracements

The most recent 5-minute swing from 0.642 to 0.587 shows price testing the 61.8% retracement level around 0.616, which failed to hold. A potential rebound may find support near the 38.2% level at 0.602 before retesting the 0.600 psychological level.

Looking ahead, traders may watch for a rebound off the 0.590–0.593 consolidation, with 0.600 as the immediate target. However, risks remain to the downside if support fails again, potentially extending the move toward 0.585.